With the Bank of England due to make their interest rate decision later on Thursday, the Pound Sterling to Swiss Franc (GBP/CHF) exchange rate dipped by around -0.12%. This can be attributed to ongoing concerns that a sluggish Eurozone will weigh on the BoE’s policy outlook. The Swiss Franc, meanwhile, is generally rending higher against most of its major peers after Wednesday’s declination was seen as unjustified.
The Pound Sterling to Swiss Franc exchange rate is currently trending in the region of 1.5313.
Yesterday…
The Pound Sterling to Swiss Franc (GBP/CHF) exchange rate advanced by around 0.93% on Wednesday after British economic data printed positively. Better-than-forecast Swiss Growth has not been enough to impact positively on the Franc.
The Pound Sterling to Swiss Franc exchange rate is currently trending in the region of 1.5347.
Pound (GBP) Gains on Services
British economic data printed particularly positively on Wednesday, allowing the Pound to recover from Tuesday’s downtrend. The Composite PMI eclipsed the median market forecast of a rise from 55.8 to 56.2, with the actual result reaching 57.6. The Services PMI also appreciated significantly, trumping the market consensus of a rise from 56.2 to 56.5, with the actual result reaching 58.6.
Markit Economist Chris Williamson stated; ‘Faster growth of services activity brings welcome news that fears of a potentially sharp slowdown in the economy look overplayed. The upturn in the service sector offset slower growth of factory production and construction activity in November, lifting the overall pace of economic growth from October’s 16-month low.’
In addition, Official Reserves (Changes) more than halved the deficit, improving from -£652 million to -£321 million.
The Pound Sterling to Swiss Franc exchange rate has dropped to a low today of 1.5197.
Swiss Franc (CHF) Stronger on GDP
Although the Swiss Franc has softened against many of its major peers as a result of bullion prices dropping, positive domestic data slowed the declination on Wednesday. On a year-on-year basis, Gross Domestic Product grew by 1.9% in the third quarter, eclipsing the median market forecast of 1.4% and improving upon the previous figure of 1.6%. On a quarterly basis, Swiss GDP improved by 0.6%, which was 0.3% higher than the market consensus.
Pound Sterling to Swiss Franc (GBP/CHF) Exchange Rate Forecast to Strengthen
With improving British services likely to have a positive impact on GDP, rate hawks may bring forward their bets regarding the timing of the first benchmark interest rate hike. Therefore, it is likely that the GBP/CHF exchange rate will continue trending higher.
The Pound Sterling to Swiss Franc exchange rate has climbed to a high today of 1.5280.
Swiss Franc (CHF) Exchange Rates
[table width=”100%” colwidth=”50|50|50|50|50″ colalign=”left|left|left|left|left”]
Currency, ,Currency,Rate ,
Pound Sterling,
, Swiss Franc,1.5281,
Euro,, Swiss Franc,1.2028,
US Dollar,, Swiss Franc, 0.9646,
Australian Dollar,, Swiss Franc, 0.8213,
New Zealand Dollar,, Swiss Franc,0.7581,
Canadian Dollar,, Swiss Franc,0.8566,
[/table]
